See the latest Australian dollar analysis here:
Not quite a sea of red across stock markets in Asia today despite the big falls on Wall Street and in Europe overnight, with mainland Chinese shares actually advancing. There’s been a co-ordination of weakness in other risk assets like Australian dollar and gold with the shiny metal slowly trying to get back after its big walloping overnight well below the $1900USD per ounce level:
The Shanghai Composite is advancing slightly, currently up 0.2% to 3276 points while in Hong Kong the Hang Seng Index is continuing its retracement, down 0.5% to 24583 points. Japanese stock markets are not doing too bad considering the risk-off mood, with the Nikkei 225 closing only 0.3% lower at 23331 points as the USDJPY pair tries to get out of its hole here, barely making it to the mid 104 level:
The ASX200 was hit the hardest, falling 1.6% after being down nearly 2% with gold and discretionary stocks hit the hardest, closing at 5960 points. The Australian dollar was largely unchanged from its hammering overnight, firming slightly to the 70.60 level but looking very weak going into the London open:
Eurostoxx and S&P futures are bouncing back slightly but obviously from very oversold positions, in line with traded risk assets here in Asia. The four hourly chart of the S&P shows a small bounce to try to get back above the 3300 point “bottom” as volatility gains momentum going into next week’s “election” aka coup aka shitshow:
The economic calendar is absolutely packed tonight, starting with German unemployment, then US GDP figures for the 3Q, then the ECB has its monthly meeting followed by its press conference.